Consumer prices rose at 3.7% annual rate in September as gas costs skyrocket
Consumer prices rose at an annual rate of 3.7% in September, driven by surging gas and diesel costs that squeezed consumers ahead of midterm elections. The Bureau of Labor Statistics reported that the consumer price index increased by 0.6% for the month. Energy prices accounted for half of the monthly increase, though price pressures remained broad-based with notable gains in shelter, vehicle costs, and apparel. The inflation rate came in hotter than the Dow Jones consensus forecast of 3.6% for the annual rate and 0.6% for the monthly gain.
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- ✓ The consumer price index increased by 0.6% in September.
- ✓ Annual inflation accelerated to 3.7% in September.
- ✓ Gas prices increased by 9.1% in September, according to the Bureau of Labor Statistics.
- ✓ Energy prices accounted for half of the monthly increase in the index.
What changed
The Bureau of Labor Statistics released the September consumer price index data, showing inflation accelerated past economists' expectations.
Live updates
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US Inflation Jumps to 3.7% in September on Rising Gas
Consumer prices rose at an annual rate of 3.7% in September, driven by surging gas and diesel costs that squeezed consumers ahead of midterm elections. The Bureau of Labor Statistics reported that the consumer price index increased by 0.6% for the month. Energy prices accounted for half of the monthly increase, though price pressures remained broad-based with notable gains in shelter, vehicle costs, and apparel. The inflation rate came in hotter than the Dow Jones consensus forecast of 3.6% for the annual rate and 0.6% for the monthly gain.
Why it matters
Inflation figures arrive as a crucial economic indicator for the Federal Reserve and voters ahead of midterm elections. Energy costs, particularly gasoline and diesel, proved to be the primary catalyst pushing the annual inflation rate higher after months of mixed readings. Markets closely monitor the consumer price index to gauge future monetary policy decisions and interest rate paths.
What is confirmed
- The consumer price index increased by 0.6% in September.
- Annual inflation accelerated to 3.7% in September.
- Gas prices increased by 9.1% in September, according to the Bureau of Labor Statistics.
- Energy prices accounted for half of the monthly increase in the index.
- The Dow Jones consensus forecast expected the consumer price index to increase 0.6% monthly and 3.6% from a year ago.
What to watch next
- Federal Reserve response and subsequent interest rate decisions following the September inflation report
confidence 100%Sources used for this update (14)
- FOREX.com — US CPI Preview: Follow the Fed and Look Past the Hot Headline
- Reuters — High gasoline prices expected to boost US consumer inflation in September
- The New York Times — CPI Report Live Updates: New Insights on Inflation, U.S. Economy and the Fed
- CNBC — Consumer prices rose at 3.7% annual rate in September as gas costs skyrocket
- NBC News — Inflation jumps to 3.7% as gas and diesel prices squeeze consumers ahead of the midterms
- CBS News — September CPI report shows inflation accelerated to 3.7% as energy costs soared
- CNN — Inflation was hotter than expected in September, rising to 3.7% | CNN Business
- BBC — US inflation rises more than expected ahead of midterm elections
- Yahoo Finance — High gas prices pushed CPI inflation to 3.7% in September
- www.cnbc.com — CPI inflation report September 2026 - CNBC
- www.upi.com — Gas prices drove consumer prices up an annual 3.7% in September
- themortgagepoint.com — Consumer Prices Rose at 3.7% Annual Rate in September
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